Paladin Energy Ltd.: Financial Report for Quarter Ending 30 September 2008: Financial News

Paladin Energy Ltd.: Financial Report for Quarter Ending 30 September 2008
Monday November 10, 2008 7:27 am ET

PERTH, WESTERN AUSTRALIA--(MARKET WIRE)--Nov 10, 2008 -- Paladin Energy Ltd ("Paladin" or "the Company") (Toronto:PDN.TO - News)(ASX:PDN.AX - News) announces the release of its Financial Report for the quarter ending 30 September 2008.

Projects:

- Production of 650,554lb of U3O8 at the Langer Heinrich Uranium Project in Namibia for the quarter. Quarterly production at design equates to 2,602,000lb on an annualised basis.

- Langer Heinrich Stage II production expansion to 3.7Mlb per annum on budget and on schedule for completion at end of calendar 2008. Expenditure to 30 September 2008 was US$21M. Planning continuing on Stage III expansion to 6.0Mlb per annum.

- Sales of Langer Heinrich uranium concentrate for the quarter of 878,000lb U3O8 averaging US$58/lb.

- Kayelekera Uranium Project construction work remained on schedule and on budget. Project is scheduled for commissioning and ramp-up from the beginning of the March quarter 2009 with the Project currently 75% complete.

- Paladin and Cameco Joint Venture granted Exploration Licence for the Angela Uranium Deposit in Northern Territory.

- Focus on exploration and evaluation of Australian projects continued, in particular the Mount Isa Uranium Joint Venture and Isa North Uranium Project in Queensland, and the Bigryli Uranium Joint Venture in Northern Territory. Total exploration and evaluation expenditure was US$3.6M for the quarter.

Corporate:

- Loss after tax for the quarter ending 30 September 2008 of US$4.7M - consisting of US$13.3M profit for Langer Heinrich as a consequence of improved performance; US$3.6M investment in exploration and evaluation expenditure; US$9.2M finance costs; and US$12.2M in other expenses including corporate/marketing costs, employee benefits and an impairment of inventory expense of US$3.7M. During the quarter a total of US$3.1M relating to non-cash share based payments was expensed.

- Strong balance sheet at 30 September 2008 with net assets of US$1.2Bn including US$279.7M in cash (US$100M invested in US treasury bonds with the balance invested with Australian banks with a minimum AA Standard & Poor's credit rating).

- Net cash inflow from operating activities for the quarter of US$15.5M primarily due to uranium sales receipts.

- Credit committee approved offers received for finance totalling US$167M for the Kayelekera Uranium Project, subject to legal documentation and fulfillment of other conditions precedent usual for this type of funding.

These results may be found shortly with the Company's other documents filed on Sedar (http://www.sedar.com) or through the Company's website (http://www.paladinenergy.com.au). The documents filed comprise the Financial Report for the quarter ending September 30, 2008, including the Management Discussion and Analysis, Report to Shareholders, Financial Report and Certifications.

A.C.N. 061 681 098